Nigeria is at a turning point. With over 230 million people and a booming youth population, the country needs strong trade partnerships to create jobs, boost businesses, and keep prices stable.
That’s where international trade agreements come in. These deals help Nigeria buy and sell goods with other countries, attract foreign investment, and open doors for businesses to grow.
While oil has been Nigeria’s biggest export for years, things are changing. The government and business leaders are pushing for new opportunities in technology, agriculture, and manufacturing. Some trade agreements are making this easier, while others come with challenges. Let’s break down nine major deals shaping Nigeria’s economy in 2025.
African Continental Free Trade Area (AfCFTA)
AfCFTA is Africa’s big plan to make trade within the continent easier. Think of it as a marketplace where African countries do business without unnecessary barriers like high taxes on imported goods.
For Nigeria, this is a chance to sell more products to neighboring countries. Small businesses, especially in agriculture and fashion, are expected to benefit. But there’s a catch, if Nigerian companies don’t step up their game, cheaper products from other African countries could flood the market and hurt local industries. The key to success? Better roads, ports, and policies to help businesses compete.
Nigeria-Morocco Gas Pipeline Agreement
Nigeria is one of the biggest gas producers in the world, but most of it isn’t used effectively. This agreement with Morocco is changing that. A massive pipeline is being built to transport Nigerian gas through West Africa, eventually reaching Europe.
If successful, Nigeria will earn billions of dollars, creating jobs and strengthening energy ties with other countries. But challenges like funding, security threats, and environmental concerns could slow things down. Still, if handled well, this could be a game-changer for Nigeria’s economy.
EU-Nigeria Partnership Agreement
Europe is one of Nigeria’s biggest trading partners, and this agreement gives Nigerian goods better access to European markets. Farmers and manufacturers can sell products like cocoa, textiles, and processed foods to Europe more easily.
However, there’s a downside, strict European quality standards make it hard for some Nigerian businesses to compete. Many products get rejected for not meeting health or packaging requirements. The good news? The government is working on solutions, such as improving product certification and helping businesses meet international standards.
Nigeria-China Trade Agreement
Nigeria and China have a strong trade relationship. China invests heavily in Nigerian infrastructure, like roads, railways, and power plants. In return, Nigeria imports a lot of Chinese goods, from electronics to clothing.
This agreement brings benefits, but also problems. Cheap Chinese products can hurt local businesses, and Nigeria often imports more than it exports, creating a trade imbalance. To fix this, Nigeria is working on increasing agricultural exports to China and boosting local production to compete better.
ECOWAS Trade Liberalization Scheme (ETLS)
Nigeria is part of ECOWAS, a group of West African countries that trade with each other. The ETLS agreement makes it easier for Nigerian businesses to sell products within the region without extra taxes.
This is great for small businesses, especially those in food processing and manufacturing. However, issues like poor road networks, smuggling, and security risks at the borders have slowed progress. The government is working on improving border security and making customs processes smoother to maximize benefits.
Nigeria-United States Trade and Investment Framework Agreement (TIFA)
The U.S. is a major economic powerhouse, and Nigeria has a special trade agreement with them. This deal focuses on increasing Nigerian exports, especially in agriculture, and attracting American investments in technology and infrastructure.
The main challenge? Meeting strict U.S. quality and safety standards. Many Nigerian farmers struggle to get their products approved for export. To tackle this, training programs are being introduced to help small-scale producers meet global standards.
UK-Nigeria Economic Partnership Agreement (EPA)
Since Brexit, the UK has been strengthening its trade ties with Nigeria. This agreement removes tariffs on Nigerian exports, helping sectors like agriculture and fashion grow.
However, critics say the deal still favors the UK more than Nigeria. Many of Nigeria’s exports to the UK are raw materials instead of finished goods, meaning Nigeria isn’t earning as much as it could. The focus now is on processing more goods locally before exporting, so the country can gain more value from its resources.
Nigeria-India Bilateral Trade Agreement
India is one of Nigeria’s biggest trading partners, especially when it comes to crude oil. However, this agreement is expanding to include other industries like agriculture, healthcare, and technology.
Nigeria is pushing to export more agricultural products to India and attract Indian investment in manufacturing. One major challenge is Nigeria’s heavy reliance on oil sales to India instead of diversifying its exports. Policymakers are working to change this by encouraging local industries to produce more high-value goods.
Nigeria-Turkey Trade Agreement
Turkey has been increasing its trade with Nigeria, particularly in construction, textiles, and defense. This agreement allows Nigerian agricultural products like cocoa and sesame seeds to enter the Turkish market more easily.
Turkey is also investing in Nigerian infrastructure, helping build better roads, housing, and transport systems. However, red tape and slow government processes have made some investments difficult. Efforts are underway to make business operations between both countries smoother.
What these trade deals mean for Nigeria
These agreements could help Nigeria’s economy grow, create jobs, and improve industries like manufacturing and agriculture. However, challenges like weak infrastructure, tough quality standards, and trade imbalances need to be addressed.
For Nigeria to truly benefit, policymakers must focus on making local businesses stronger, improving roads and ports, and ensuring fair trade practices. If done right, these deals could create a brighter economic future for millions of Nigerians.